Economic Outline

Economic Indicators

With a strategic location that makes the country a natural gateway into the landlocked region of Central Africa (including Chad, Central African Republic, and northern Congo), Cameroon is undoubtedly an influential country in the economic and monetary community of the region. Cameroon's economy has remained resilient to external shocks, but structural weaknesses hinder its potential. Between 2020 and 2023, overlapping crises led to an average GDP growth of just 2.6%. Growth is further slowed by poor infrastructure, especially in electricity, roads, and internet connectivity. Other challenges include an underdeveloped financial system and heavy reliance on commodity exports. The medium-term outlook is moderately positive, with real GDP growth projected at 3.7% in 2024 and slightly above 4% in 2025 and 2026 (World Bank). Key drivers include improved energy supply from the Nachtigal hydroelectric dam, which now accounts for one-third of the current supply, and increased public investment, particularly in infrastructure, targeting 7% of GDP by 2027.

The fiscal deficit fell to 0.8% of GDP in 2023, down from 1.1% in 2022, driven by lower fuel subsidies, reduced capital spending, and improved tax collection. Higher revenues supported increased public investment in 2024, with the deficit estimated at 0.8% in 2024 and projected at around 1% in the medium term (World Bank). Cameroon’s public debt is considered sustainable but carries a high risk of distress due to breached liquidity thresholds. It is expected to follow a downward trend amid nominal GDP growth, decreasing to 36.8% by 2026, from 40.3% in 2024. Average inflation fell to 4.7% in 2024 from 7.7% a year earlier, driven by BEAC’s restrictive monetary policy, easing foreign inflation, and government price controls, despite a fuel price hike in February 2024. The rate is expected to decline further to 3% in 2026 (World Bank).

Climate change and fragility continue to hinder growth and poverty reduction. Cameroon must rethink its growth model, emphasising private sector involvement, redefining the state's role, and boosting labour productivity. Poverty rates have stagnated since 2001, and rapid population growth has pushed extreme poverty above 6.6 million in 2023. Inequality remains high, with a Gini coefficient of 42.2, reflecting stark regional and urban-rural disparities (World Bank). Fragility is worsening, with conflicts now affecting nine of ten regions, including spillovers from neighbouring countries. According to data from the National Institute of Statistics in Cameroon, the unemployment rate in the country in 2024 stood at 3.6%; however, the unemployment rate among young graduates (25 to 35 years) is 5 times higher than that of non-schooled individuals.

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